The Forex forecaster indicator is a trend swing indicator. This indicator is best suited for the long term traders or the intraday traders. It is suitable on all the currency pairs and in all the timeframes.
This indicator is a highly efficient indicator that doesn’t redraw or repaint. It one of the few indicators that you will come across that will give you the 100% profits only if it is used accordingly. It is also a best choice for the Forex beginners. They will only have to go through this article so as to clearly understand all that is required of them when they are trading.
The Forex forecast indicator is displayed on a separate window below the main trading chart. Its chart is divided into two sections by a zero line. Then there are black and pink bars that oscillate on this zero line. With this indicator unlike the other swing indicators, it doesn’t have any color change. The pink and the black bars can appear on either side of the zero line.
The trend of the market prices is indicated by the side of the zero line that the bars are formed. If the bars are formed on the lower side, then the trend in the market is a downward trend. If the bars are formed on the upper side of the zero line, then the trend is an upward trend. The black and pink bars have varying lengths depending on the strength of the trend in the market at the moment of their formation.
Fig.1. The Forex Forecaster indicator.
The black bars shows a longer term trend as compared to the pink bars. That is the reason as to why you will notice that the pink bars swings (appear on both sides of the zero line) more often than the black bars. This means if the black bar is below the zero line and the pink bars are formed above the zero line, there is an upward retracement of the market prices from the overall down ward trend that is being indicated by the black bars. Therefore with this indicator the trader is able to differentiate when he or she is trading alongside the main trend or alongside a retracement and this will determine even how much the trader is to expect from each trade.
Using the Forex Forecaster indicator to place and close orders
When using the Forex Forecaster indicator, the trader should mainly eye the pinks bars especially if they are intraday traders. But for the long term traders, they can depend on the black bars.
For an intraday trader, he or she should place a buy when a pink bar to appear above the zero level and place a sell order when a pink bar to appear below the zero level. Intraday traders should close their trades when an opposite signal is given (when the pink bar is formed either below or above the zero line depending on the trade that is running).
Fig.2. Using the Forex Forecaster indicator in intraday trading.
On the other hand, for a long term trader, he or she should place a buy when black bar appears above the zero line and a sell when a black bar appears below the zero level. The long term traders should close their orders when an opposite signal is given.
Fig.3. Using the Forex Forecaster indicator in long term trading.
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